INDIA Law and Practice Contributed by: Priyank Ladoia, Asif Ahmed, Pranav Tomar and Puneet Dhanoa, AZB & Partners
In relation to the investigation of offences and arrest of persons concerned in such offences, the CBI (under the Delhi Special Police Estab - lishment Act, 1946) has all the powers, duties, privileges and liabilities that police officers have in connection with the investigation of offences. After completing the investigation, the CBI must submit a report to the CVC. The CVC must con - sider such report and decide whether to: • file a charge-sheet or closure report before the Special Court against the public servant; or • initiate departmental proceedings or any oth - er appropriate action against the concerned public servant by the competent authority. Police Authorities/ACB The police authorities derive powers from the BNSS, and can: • issue summons to join the investigation; • seek records and documents; • take statements (even though such state - ments are not judicial statements); • arrest the accused; and • conduct searches and seizures. However, the police authorities, like other inves - tigating agencies, must seek permission of the competent authority to initiate an inquiry or investigation, as mandated under Section 17A of the PCA. ED In cases where the investigating agency, after a preliminary inquiry, lodges an FIR, and where the alleged offence is a scheduled offence under the PMLA, the ED can register an enforcement case information report (ECIR) and initiate investiga - tion under the PMLA. Since the ED’s investiga - tion is triggered only after the CBI/police authori -
ties have received permission under Section 17A of the PCA to initiate investigation, the ED does not seek a separate permission under Section 17A. The ED has the power to (among others): • summon the accused/witnesses; • compel production of records; • receive evidence on affidavits; • issue commissions for examination of wit - nesses and documents; and • arrest the accused. In addition to these powers, the ED can attach tainted properties or properties of equivalent value, and can freeze assets/accounts. These powers have been extended to police officials and the CBI, under Chapter IV of the PCA, by the Amendment Act. The Central Government has, by way of Section 66 of the PMLA and by various notifications, allowed information-shar - ing among agencies, and has allowed the ED authorities to furnish or facilitate the provision of information to various government agencies, if such information is necessary for the agencies to perform their functions under the respective laws. As a corollary, since the police/CBI inves - tigation is a precursor to the ED initiating the investigation, these agencies provide most of the information/evidence collected for the ED, to enable it to record a comprehensive ECIR. Income Tax Authorities Income tax authorities investigating offences under the Black Money Act draw powers from Section 131 of the Income Tax Act, and have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (CPC) – namely: • discovery and inspection; • enforcing the attendance of any person, including any officer of a banking company, and examining them on oath;
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